Quote:
Originally Posted by Biggd
If more people bought second homes, the meals and room taxes would be affected negatively. That could be why the numbers have decreased because it sure seems busier in the Lake's Region, the White Mountains, and along the coastal resort towns than it was in 2000!
People that own second homes aren't renting rooms and eating out as much. I'd be curious as to what the increase in second home purchases has been since 2000.
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We think some of the effect is that STRs are not paying the tax as required.
We knew this for years as many would rent their homes for Bike Week, but never file a Meals & Room taxation form. That removes the money from the hotel/motel, but doesn't substitute out at the State treasury.
Laconia's change to require that, hopefully with the penalty being tax evasion and some time in prison, may get that back under control. As other municipalities will follow.
Whether they rent the whole structure or just a room for just a day, a weekend, a week, or a month will make no difference... they all must file and pay the tax.
The reason for the drop is largely snowmobiling. Snowmobiling accounted for roughly 25% of the number in 2000. It peaked at 78000 registrations around 2003. It has declined by more than 50% of users, and revenue is even lower.
About 80% of the revenue was from residents and second home owners in NH going all the way back to 2000. That hasn't changed much.